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You are an accountant and have two clients you’ll be dealing with during this assignment.  JumpinJehosaPhats is a haberdashery (Google it!), and is owned by J.J. Phats.  JJ is expanding the company and is in need of advice.  He has come to you to discuss the future of the company.

 

Part 1 – Incorporating (25% of grade)

 

Discuss in detail the requirements of incorporating the business, the advantages and disadvantages, and provide JJ with recommendations.

 

Part 2 – Account Prep (25% of grade)

 

Using the data provided, create the owner’s equity accounts and the shareholder’s equity section of the balance sheet after the incorporation of JumpinJehosaPhats.

 

Part 3 – Expansion Considerations (25% of grade)

 

JJ is in need of raising money to expand the company and has identified the methods that he is considering.  Using the information provided, calculate any burden to the corporation and provide recommendations to JJ concerning his options. 

 

Part 4 – Cash Flow (25% of grade)

 

Your second client, Bailey’s Chocolates, is asking you to produce a Cash flow from Operating Activities.  Using the Indirect Method and the information provided, calculate the cash flow from Operating Activities. 

 

Be sure to cite your resources and include supporting calculations and evidence to support your positions.

 

 

 

 

 

 

 

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